All articles tagged with #housing industry
President Trump criticized Federal Reserve Chair Jerome Powell and Governor Lisa Cook on social media, blaming them for hurting the housing industry and calling for interest rate cuts amid rising inflation and mortgage rates. Powell is set to speak at the Jackson Hole symposium, where investors will look for clues on future monetary policy.
Mortgage rates are nearing 7%, dampening hopes for a housing market resurgence this spring. The increase is attributed to stubbornly high inflation, which is dimming hopes of interest-rate cuts from the Fed. There are fears that rates could climb to 8%, but this would require several negative factors to align. The situation has left industry professionals feeling pessimistic about the market's current state.
The National Association of Home Builders, the Mortgage Bankers Association, and the National Association of Realtors have written a letter to the Federal Reserve urging them to stop raising interest rates due to surging housing costs and a shortage of available homes for sale. The groups ask the Fed not to contemplate further rate hikes and not to sell its holdings of mortgage securities until the housing market stabilizes. The housing market is currently facing constrained inventory levels, rising prices, and decreased sales volumes. The letter highlights that the rate hikes have exacerbated housing affordability issues and created disruptions in the real estate market. The Fed has reduced its mortgage holdings by nearly $230 billion since June 2022, but concerns remain about the possibility of the Fed actively selling its mortgage-backed securities holdings.
Only 16 mortgage lenders and brokers made Inc. Magazine's annual list of the 5,000 fastest-growing private companies in the U.S. for 2023, a significant decline from the previous year. The companies on the list relied on technology or niche products to generate volume, with VA Wholesale Mortgage leading the pack with a 2,230% three-year growth rate. The mortgage industry is still adjusting to historically low rates, and many loan officers are buying leads from companies like Zillow and Realtor.com.